ESOP Advisor in O'Fallon, MO

Complimentary financial planning By Savology

ESOP advisor in O'Fallon, MO. Employee stock ownership plans (ESOPs) are becoming a more and more well-liked retirement plan for employees in a variety of sectors in O'Fallon, MO. They offer business owners an opportunity to exit their company while considerably reducing taxes on the sale, and offer employees a tax-advantaged retirement plan that increases their investment in your company. However, designing, implementing, and maintaining an ESOP isn't something most O'Fallon, MO business owners can do by themselves. Correct Capital's proficient and savvy ESOP advisors help businesses of all sizes, in O'Fallon, MO and around the U.S., design tailored retirement plans that benefit themselves, their employees, and their profit.

If you're in search of a trustworthy financial partner in O'Fallon, MO who shares your goals of creating your company and employees for sustained success, call Correct Capital at 877-930-4015, contact us online, or schedule an appointment with one of our financial advisors right away.


Schedule a Meeting With an Advisor Today

Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.

Schedule a 15-Minute Introductory Call


What Is an Employee Stock Ownership Plan (ESOP)?

An ESOP is a tax-advantaged retirement plan where employees receive shares of the company that employs them, rather than savings or investments in other companies such as in a 401(k). ESOPs are fully funded by the employer, and often times shares offered to employees are not governing shares, meaning control of the company stays with ownership and other executives. They offer excellent incentives to employees while providing businesses with an improved value proposition in the hiring process, and allow business owners to set up a succession plan while retaining control. Upon reaching retirement, most employees sell the stock at market value.

Perhaps even more importantly, by selling part of your ownership to the ESOP, owners can defer capital gains taxes, allowing you to allocate that tax hit instead of having to pay taxes promptly. In many cases, ESOPs are a transition plan that keeps the most amount of money feasible in your pocket.

Benefits of an Employee Stock Ownership Plan

  • Sell a portion of your business (minimum 30%) with deferment of capital gains taxes (provided you reinvest into qualified replacement securities)
  • Additional tax deductions through contributions made to employees
  • If the business is eventually 100% owned as an S-Corp by the ESOP, it's not subject to federal income taxes
  • Align the goals of employees and stockholders
  • Offer a higher value proposition when hiring
  • Improve employee motivation and productivity
  • Boost employee retention and loyalty
  • Simplify succession planning and business continuity
  • Keep control while organizing or easing into retirement
  • Raise personal liquidity of owners, but still hold on to control of the company
  • Carry on your business' legacy and culture

What About KSOPs?

A KSOP is a similar type of plan that is a mix between an ESOP and a 401(k). Ownership shares are given to employees as in an ESOP, employees can deposit their own money to acquire additional shares through payroll deductions, or the company can match employee contributions with shares rather than cash.

Setting up a stock ownership plan doesn't have to exclude your employees from the risk tolerance that comes with diverse investments. In fact, incorporating an ESOP or KSOP to a more traditional retirement plan allows you to receive the benefits of both. The experienced O'Fallon, MO ESOP advisors and retirement consultants of Correct Capital can aid you find the right plans for your business.

What Our O'Fallon, MO ESOP Advisors Do for You

Whether you're stepping from control of your company or are interested in an ESOP's other benefits, you'll need a knowledgeable O'Fallon, MO ESOP advisory firm in your corner to reap the most benefits of your plan. When you work with Correct Capital, we:

  • Reduce your tax liability as much as possible — When you sell your ownership shares to an ESOP, you can reinvest the proceeds in other securities to postpone capital gains taxes on the sales, allowing you to keep more of the sales proceeds for different purposes. To postpone capital gains taxes, your ESOP advisor can help you perform a Section 1042 exchange by selling at least 30% of your company to the ESOP and reinvesting the proceeds in qualified replacement securities or QRP. Taxes would be payable until the taxpayer has a disposition of the QRP. An ESOP advisor can guarantee you receive the most tax benefit from your ESOP.
  • Customize your ESOP and retirement plans — Along with your team, we'll develop and execute an ESOP suited specifically to you and your company. We like to push ourselves and our clients to get innovative with retirement plan offerings to enhance the benefits they provide. We'll evaluate your needs, evaluate several ESOP options, and propose a customized ESOP that meets legal requirements and is aimed at optimizing benefits. If we believe it's a good idea, we may also suggest combining an ESOP with a 401(k) or other retirement plans to further boost benefits, yet retain efficiencies.
  • Conduct a ESOP feasibility study — When we first meet with our clients, we work to comprehend their needs and collaborate with them to find the optimal qualified retirement plans for their business. For clients looking at an ESOP, part of that means conducting a feasibility analysis to establish if it's a viable option for your company. We'll examine:
    • Cash flow, debts, and overall financial health
    • Ownership structure to understand the implications of introducing an ESOP
    • Employee demographics to understand what they need from their retirement plan
    • Tax implications for both your company and shareholders
    • Company culture and employee engagement to see if an ESOP is likely to be well-received and supported

    What if your business isn't a great fit for an ESOP? We'll partner with you to find a retirement or succession plan that works for you.

  • Connect you with valuation firms and trustees — Implementing and maintaining an ESOP involves a lot of moving parts, including accountants, attorneys, and a trustee to purchase stock of the company on behalf of the ESOP. An experienced ESOP advisor with a strong network in O'Fallon, MO can help you arrange your ESOP team with reliable partners.
  • Ensure compliance — IRS, Department of Labor, and ERISA all have strict regulations for the oversight of employee stock ownership plans. For instance, when individuals enrolled in an employee stock ownership plan at a closely held employer receive company stock in an ESOP distribution, they have the option to demand the employer to redeem them at market value.
  • ESOP sustainability assessments — In an ESOP, shares are granted to employees over time based on duration of service. Most of the time, that means ownership of the company is sold to the ESOP in phases. Depending on how you structure your company and the plan, your ESOP may start with 30%, but could ultimately achieve 100% ownership. As the plan progresses and matures, so will its implications for your company. ESOP advisors can plan for these changes and react to them in real time, facilitating your plan to stay feasible, compliant, and profitable.
  • Employee communication and education — Our ESOP advisors offer group meetings and individual consultations with your employees so they can optimize the advantages from your retirement plan. With an ESOP advisor from Correct Capital, your employees won't just acquire partial ownership of your company, but they'll feel like they're achieving ownership of their financial stability and eventual retirement.

Why Choose Correct Capital as Your ESOP Advisor in O'Fallon, MO

Correct Capital is an independent advisory firm that specializes in helping business owners create retirement plans and succession plans for their companies. There are numerous factors we believe distinguish us from other financial consulting companies in O'Fallon, MO, and across the United States:

  • A member of the National Association of Plan Advisors (NAPA), Correct Capital was recently named one of their Top Defined Contribution (DC) Teams with Assets under Advisement of at least $100 million. Correct Capital is the only advisory firm in Missouri to achieve this distinction.
  • We're experienced in retirement plans and ESOPs. Correct Capital's clients currently operate these plans in a variety of sectors, including for construction companies and contractors. As we work with both businesses and individuals and families when managing retirement plans, we're well-prepared to understand the needs of each and create a plan that fulfills the necessities of both, as well as those of your stockholders.
  • Our award-winning O'Fallon, MO financial advisory team is composed of a wide range of financial expertise, including an Accredited Investment Fiduciary®, multiple CERTIFIED FINANCIAL PLANNER™ professionals, a certified public accountant, and a six-time Barron's Top 1200 Advisor. With over 80 years of combined experience, we pool our collective talents and insights to best serve each client distinctively.
  • As independent fiduciary advisors, we are legally and ethically bound to do what's in the optimal interest of you, your employees, and your company. We endeavor to establish long-term relationships with our clients grounded in trust and the common goal of growing your and your employees' monetary well-being.

Other services we offer in O'Fallon, MO:

ESOP Advisor in O'Fallon, MO | Retirement Consultants | Financial Advisors Near O'Fallon

Call Correct Capital to Speak With an ESOP Advisor in O'Fallon, MO Today

If you're interested in learning more about ESOPs or aspire to initiate the process of setting one up for your O'Fallon, MO business, contact a Correct Capital ESOP advisor now. Let us do what we do best so you can prioritize on what you value most: positioning yourself, your business, and your employees up for success. Reach out with one of our O'Fallon, MO ESOP advisors immediately at 877-930-4015 or contact us online.


Are you ready to experience the Correct Capital difference?

GET STARTED

Meet our team of financial advisors.

Our Team

Services We Offer